Many disputes can arise when parties enter into verbal breeding agreements or lease agreements. Often lessees refuse to return a leased cow claiming that it was purchased or was a gift. The lessee may make claims for feed and board in excess of those originally agreed to. Liability issues may arise. Disputes over the standard of care are common, and disputes may arise in the event breeding is not successful, or if the breeding results in a stillborn calf.

Most disputes can be avoided by the use of a properly drafted breeding contract or lease agreement.

A breeding contract is an agreement between a cow owner who wants to breed his cow to a specified bull, and the owner of a bull. Without a carefully drafted breeding contract, misunderstandings or disputes may arise.

Prior to delivery of the cow to the bull owner’s ranch, or prior to the cow’s exposure to the bull, the parties should execute a written breeding contract. The contract should clearly identify the parties, the cow and the servicing bull.

The breeding fee should be stated in the agreement and contingent provisions should be expressed in the event the cow fails to become impregnated. If the breeding is not successful, options may be included such as termination of the contract or rebreeding to another bull. The parties’ mutual understanding or definition of what constitutes a live calf should be clearly defined in the agreement.

Since the cow will be left in the possession of the bull owner, the breeding contract should address the standard of care. Provisions for amount and quality of feed and veterinary care should be detailed in the contract.

The breeding contract should address liability issues to reduce the chance of being sued for damages to property or injury to individuals. A waiver of liability clause should be inserted in the breeding contract clearly identifying which party will assume risk of loss of the cow. The parties might agree to provide a liability insurance policy during the term of the breeding contract or lease agreement.

A lease is a written agreement providing for the use of a cow or bull over a defined period of time. The Lessor in these arrangements is the owner of the animal and is parting temporarily with the animal under the lease agreement.